Piramal Group announces an AIF Partnership with IIFL Wealth

Piramal Group, one of India’s foremost business conglomerates with a global footprint, announces a co-investment on an Alternative Investment Fund (AIF) platform with IIFL Wealth Management, a leading wealth and asset management companies in India, to fund select advance stage or last-mile real estate projects across Tier 1 cities in India. This AIF with a target size of INR 2,000 crore will be used to provide capital to Tier 1 developers in key markets.

The market today presents many opportunities for last-mile finance across projects that require a minimum amount of gap funding for completion. Piramal Group which has a long-standing track record of both primary development and wholesale funding in real estate, also holds a fiduciary fund management business across multiple funds and mandates across structured, preferred and pure equity. On the other hand, IIFL Wealth is one of the leading wealth managers in the country today, with aggregate assets of around INR 1,70,000 crores under management, advice and distribution. This partnership is thus a sure bet to take the last-mile real estate business to the next level.

Piramal’s deep domain expertise in real estate and IIFL Wealth’s ability to seize the best market opportunities have resulted in well-structured investment idea

Commenting on this partnership, Khushru Jijina, Managing Director, Piramal Capital & Housing Finance, says, “The creation of this AIF is in line with Piramal Group’s strategy to build newer platforms for co-lending with liked-minded reputed institutions. We will initially seed the fund with existing loans from Piramal Group’s portfolio, while continuing to explore quality deals from the market in future.”

“Piramal’s deep domain expertise in real estate and IIFL Wealth’s ability to seize the best market opportunities have resulted in well-structured investment idea which will provide clients an ideal risk-adjusted return,” remarks Karan Bhagat, Founder, MD & CEO, IIFL Wealth Management.

With this, Piramal will also be facilitating external capital (on a fund or co-investment basis) alongside its lending business which will enable the group to further grow its lending business through a new co-investment or co-origination model. While, the IIFL Asset Management has raised a cumulative AUM of INR 70000000000 across eight real estate funds, till date. Of which, it has fully exited first two funds, generating a Gross IRRs of 18-22 percent.